Northwest Bio accused in stock-pump scheme, but CEO denies it

Northwest Bio (NWBO) CEO Linda Powers denies charges contained in yesterday's Seeking Alpha article by Richard Pearson that the driving force behind gains in the stock price is a string of promotional pieces, asserting that the author didn't mention "the real reason, that the company has made tremendous operational progress."

Pearson contended that "many of the authors who have written on Northwest are using fake identities and fake credentials. They pretend to be biologists, other scientists, or fund managers. In fact, they are just paid writers."

Powers says NWBO has a business relationship with an outside investor relations firm that promotes the company on social media sites, but that writers are not commissioned to write puff pieces, as Pearson alleges.

NWBO has dropped nearly 7% since Pearson's story was posted Monday morning.

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Comments (18)
  • Bio Bull
    , contributor
    Comments (252) | Send Message
    To be fair, most small cap biotechs dropped more than 7% since Monday morning. NWBO is actually looking pretty good. Might be giving more credit to Pearson than is due.
    8 Jul 2014, 07:03 PM Reply Like
  • Michael Brando
    , contributor
    Comments (29) | Send Message
    Seeking Alpha turning trashier and trashier every day
    8 Jul 2014, 07:36 PM Reply Like
  • Weighing Machine
    , contributor
    Comments (913) | Send Message
    sounds like Linda is a clown who has a problem with honesty
    8 Jul 2014, 08:55 PM Reply Like
  • Erbois
    , contributor
    Comments (223) | Send Message
    What happened to the shorting promotion of CYNK??!! Have you covered your shorts?
    11 Jul 2014, 05:02 PM Reply Like
  • gmanwicksy
    , contributor
    Comments (131) | Send Message
    Sounds like seeking alpha is full of clowns with long and short agendas. 3 ring circus with merry go round action here. If your long your a pumper, and if short your a basher.... lol,,,,cant we all just get along?
    8 Jul 2014, 10:13 PM Reply Like
  • Terry Booth
    , contributor
    Comments (3) | Send Message
    One can be just as crooked on the short side as the long side. The real issue is does NWBO's treatment work? There are documented cases with people who have undergone treatment that are still living after ten years when the average life span for the present treatment of care provides about 4.7 months. These kinds of stories are trash (I agree with Michael Brando). Let's wait and see who's right. It seems the problem arises from NWBO's touting results ahead of the official reports; however, retail investors are hungry and even begging for updates, which pressures small bios give in. It is hard to resist the temptation.
    8 Jul 2014, 11:05 PM Reply Like
  • longimgn
    , contributor
    Comments (948) | Send Message
    Terry Booth


    One person's trash is another's persons treasure.....that is why we have a market....About the timing of PR about Vax-Direct...When the trial was announced years ago, the company stated very plainly what would be their goal was "tumor regression" or evidence of narcosis of tumor cells...
    They stated that this evidence would become evident in about 4 - 8 months. It would work, or it would not....They now stated "it works".
    This is a new way of treating cancer and the old rules don't rule...
    they have set a new standard and a new way of reporting and a new way of
    treating a solid tumor....They have seen the results they had hoped to see and published them because they said they would....If you and others want to judge the effectiveness of this treatment on the old standards, then, yes, it is to early to report to the public what the investigator has seen when he has biopsied his patients with the DC cells...So, some of us
    like what we are seeing and the patients in Palliative Care who have no hope of effective treatment left are now seeing their tumors die are also
    thankful, so take it or leave it, the early results are positive and encouraging and yes, we do have to wait years for all the results to come forward, but now we can catch a glimpse that early on, it is helpful...
    9 Jul 2014, 08:41 AM Reply Like
  • libouban
    , contributor
    Comments (143) | Send Message
    SA got factual rebuttals and a counter article on SmithOnStocks to the hit piece from Richard Pearson and rather than examining the rebuttals and retracting the article as it should, it chooses to add to the confusion by this small piece that pretends to see both sides of an argument. Well, there is truth or not. And with a title like "Northwest Bio accused in stock-pump scheme, but CEO denies it", it only adds to the hit piece. Just look at how the title will show up in Yahoo Finance for instance.
    I ask SA to check the accusations leveled against NWBO and Smith On Stocks and to retract the libelous article.
    8 Jul 2014, 11:10 PM Reply Like
  • Relayer
    , contributor
    Comments (38) | Send Message
    Sensational titles seem to go-to m.o. for the media. Pretty sad.
    9 Jul 2014, 12:57 PM Reply Like
  • SA User 74XXXXX
    , contributor
    Comments (836) | Send Message
    Who are trapped inside the roach motel?


    Those listened to the shorts and then reacted with buy-high-sell-low are.


    Long NWBO and long long long CEO Powers :)
    9 Jul 2014, 02:10 AM Reply Like
  • bhodges14
    , contributor
    Comments (31) | Send Message
    Being involved with the Direct trial, it is very easy to see through the obvious bash articles to try and dissuade people from investing in this company for someone's own personal gain. It is the worst of human nature.


    I can assure you that Larry Smith doesn't have any inside information but his research and expertise has been the most spot on of any of the commentators I have read.


    My wife and I have followed Northwest since November of last year in investigating trials. Amazingly there has been a full on effort of manipulation and persuasion to bash this company...I would say the ratio on SA and Twitter is probably 10 to 1.


    We take notice that none of the bashing pertains to the actual data and the actual outcomes of this trial. If you scour the internet you will find a number of personal caring bridge, facebook and message board pages with individuals sharing their experiences in DCVAX-L and Direct Trials. The rest of this nonsense is for show and to make money.


    We pray that my wife will be someone who will benefit from this vaccine, and it has already given her tremendous Quality of Life over her previous chemo (and she still has to deal with remnants of peripheral neuropathy).


    At some point we pray cooler heads will prevail and realize that you are either an impeder of progress or you embrace it. Nobody likes change, but I can't see how you can justify standing in the way of trying.


    DCVax Direct is a combination of Coley's Toxins, with dendritic cell maturation. Over the past year or two, you can see a lot of focus on this area in ImmunoTherapy. Anyone who thinks injecting saline in to a tumor is going to cause t-cell infiltration (determined by biopsy reports) is very naive.


    Lastly, MD Anderson provides these detailed case study reports to Northwest and patients have access to these records as well through Anyone who believes the doctors in the trial are not aware of the progress of their patients should also question that logic. MD Anderson is very aware of the status of this trial. I would say there concern as "scientists" is they want to analyze the entire data before drawing conclusions. If you actually read the PR's, there are NO conclusions being drawn from the release of data. And this release is incredibly valuable to patients in the trial who can assess their own position with others who are further along.


    Best wishes to everyone, especially those fighting the battle on the frontlines!
    9 Jul 2014, 09:47 AM Reply Like
  • theredbaron8888
    , contributor
    Comments (30) | Send Message
    Ben, very happy to hear of the quality of life improvement your wife has been experiencing. All our thoughts and prayers are with you and family as you fight this battle so courageously, and with such dignity.


    Best wishes, as always.
    9 Jul 2014, 10:10 AM Reply Like
  • tinsley09
    , contributor
    Comments (339) | Send Message
    Pearson has proposed a simple empirically testable hypothesis. HYPOTHESIS:There is a positive correlation between the number of promotional articles(independent or predictor variables) published about NWBO and the increase in its price(dependent variable) over the last 12 months.All data in public domain.


    With some small math. modifications for lack of continuity in the predictor variables,this hypothesis can be easily tested by any computer program using the technique of MULTIPLE Regression.


    I have in fact proposed in a letter to the Editor of S.A.,that they encourage Pearson to do this simple statistical test.


    It is unfortunate that Pearson resorted to a meticulous and bloated web of allegations ,conjectures and AD HOMINEM arguments, to propose his SIMPLE hypothesis.It is even MORE unfortunate that the Editors of S.A. actually selected it as the EDITORS CHOICE.
    Linda Powers alternative proposal ,that it is the actual progression and acceptance(in the UK,Germany etcn) of the biotechnology of DCVAX-L and DCVAX-direct that has driven the stock price of NWBO is also empirically testable with the same multiple regression methodology.
    9 Jul 2014, 10:37 AM Reply Like
  • carolina72
    , contributor
    Comments (68) | Send Message
    You are as delusional as RP and AF...No amount of BS statistics can detract from the success that NWBO has given patients struggling with cancer.
    11 Jul 2014, 04:53 PM Reply Like
  • budfish
    , contributor
    Comments (68) | Send Message
    Pearson's article and the steady stream of assertions from several posts over the last six months or so has led me to one conclusion: Due diligence is my SOC and paying attention to SA authors with unknown agendas is foolish and a waste of valuable time. My opinion of SA is that they are using a business model of encouraging freelance authors (paying them for successful click goals), to sell advertising. The higher the click number, the higher the advertising rate. (See the Zacks ad on the right ?) Stepping back and thinking about it, what investor would expect to get valuable investment advice from "free" articles written by freelance authors? SA is a promotion mill.
    9 Jul 2014, 12:12 PM Reply Like
  • longimgn
    , contributor
    Comments (948) | Send Message


    I agree to a point with your comments and opinions......Like anything else in life, when you read something, one has to make a decision about what it is and what it means for your life, if it has meaning at all....SA has introduced me to many thoughtful and informed people who I never would have heard from in any other way, I think......Naturally, there are also authors who have thoughts that do not seem so well informed and that is for the hearer to decide....I don't think anyone, myself included, is perfect...We live in an age of instant communication and my responding to you is an example of that....We (I), need SA to have this conversation...Who I listen to and believe, that is up to me and I will blame no one except myself if I am led astray....Thanks
    9 Jul 2014, 12:21 PM Reply Like
  • f3tt
    , contributor
    Comments (96) | Send Message
    It's relatively to sort the wheat from the chaff, but regardless, I personally find the comments section often more valuable than the articles.
    A gauge of sentiment (or apparent sentiment) plus a serious of more rigorously defended points and opinions.
    9 Jul 2014, 07:43 PM Reply Like
  • carolina72
    , contributor
    Comments (68) | Send Message
    Just the fact that they published an article by someone with such a horrific investment advice track record as RP shows that they have sold out to some pathetic idiots. Beyond sad SA...
    11 Jul 2014, 04:54 PM Reply Like
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